STA posts impressive 2020 performance, making 9,531 million baht in net profit, aided by strong sales of latex gloves and natural rubber

Wednesday 17 February 2021 12:09
STA posts impressive 2020 performance, making 9,531 million baht in net profit, aided by strong sales of latex gloves and natural rubber. Board approves dividend payment of 1.75 baht per share, prepared to declare XD on 12 April 2021.
STA posts impressive 2020 performance, making 9,531 million baht in net profit, aided by strong sales of latex gloves and natural rubber

Sri Trang Agro-Industry Public Company Limited (STA) had impressive growth in 2020, making 9,531million baht in net profit which represents an increase of 25% from the previous year. Earnings from sales and services amounted to 75,479 million baht, increasing 25% from the previous year, as global demand for latex gloves grew and the prices and demand for natural rubber rebounded toward the end of last year. The company's Board of Directors approved a dividend of 1.75 baht per share and has set to declare XD on 12 April 2021.

Mr. Veerasith Sinchareonkul, Executive Director of STA, the world's leading producer and distributor of natural rubber products, reported that the company achieved an impressive growth in 2020 even though the world economy contracted as a result of the COVID-19 pandemic. The company earned a net profit of 9,531 million baht, an impressive feat. Earnings from sales and services amounted to 75,479 million baht, an increase of 25% over earnings of 60,286 million baht in 2019.

The fourth quarter of 2020 performance showed a steady growth, continuing the trend from previous quarters. The company earned 5,499 million baht in net profit, an increase of 7,331% compared to 26,246 million baht in the fourth quarter of 2019. Total revenue from sales and services, meanwhile, stood at 26,246 million baht, increasing by 76% compared to 14,881 million baht in the same period the year before.

STA's strong growth was driven by increased world demand for rubber. Particularly, China's economic recovery following its successful containment of the COVID-19 outbreak had a positive impact on the recovery of the automobile sector, leading to greater demand for natural rubber in tire production. Furthermore, the 2020 performance of Sri Trang Gloves (Thailand), an subsidiary of STA and the world's third largest producer and distributor of latex and nitrile gloves, has reached a new high.

As a result of the positive performance, the company's Board of Directors on February 16, 2021, has approved a dividend of 1.75 baht per share for 2020, totaling a payout of 2,688 million baht. The board also declared XD on 12 April 2021 and dividend payment on 29 April 2021. Taken together with the interim dividend payment of 0.50 baht per share covering the period from January 1 to September 30 of 2020, the total dividend payout for the entire year of 2020 comes to 2.25 baht per share.

"We are confident that we'll be able to maintain the growth trajectory this year because the rubber industry's negative outlook is now a thing of the past and the world's economic trend looks set to recover gradually. Demand for natural rubber is poised to be on the upswing. This is particularly true with the automobile industry, which needs natural rubber for tires, as well as the latex glove industry, which commands ever stronger demand. These are the factors benefiting our growth," Mr. Veerasith said.

Source: MT Multimedia Company